Impact of world cotton markets liberalization on cotton trade of Africa: A case study of Sudan

Abstract: In this paper, the impact of full liberalization of world cotton markets on Sudan and some selected African countries was estimated. Last version of Agricultural Trade Policy Simulation Model (ATPSM) was ap¬plied after updating cotton data for Sudan. The results of the simulation are consistent with expectation that the liberalization of cotton markets will lead to an increase in the world market price of cotton. The higher world market prices of cotton have a positive impact on the production and trade of the selected countries. Also, a moderate gain for the cotton producers and total welfare is registered. The paper concluded that the removal of all distorted policies from cotton markets could bring a greater benefit for Sudan and African countries in terms of production and trade. Also, reforming of cotton markets in Sudan and African countries is vital to increase the gain from a liberalized, competitive world cotton market.Keywords: World Cotton market liberalization, Sudan cotton trade, Partial equilibrium analysis